Analyst Expects Falling Cruise Prices in 2009

Cruise bookings have slowed materially over the last 10 days, and unless economic conditions change, cruise pricing will deteriorate going into 2009, according to a report by Wachovia Bank equity analysts.

“We believe bookings for the industry have slowed materially over the last 10 days along with other types of consumer discretionary purchases,” Wachovia analyst Tim Conder said in a note to investors. “Should current global financial market conditions persist over the next few weeks, we believe it is unavoidable that ‘09 pricing will exhibit further downward pressures.”

Conder noted that despite a decrease in fuel costs, which has previously helped buoy up cruise stocks, “investors are primarily concerned with the demand outlook for 2009.”